1 equal principal and interest: monthly repayment = principal × interest+principal/interest.

According to the calculation formula of equal principal and interest, we can see that the monthly repayment amount is fixed, and users only need to repay the fixed amount on time.

Because the monthly repayment amount is fixed, it can control the expenditure of family income in a planned way, and it is also convenient for each family to determine the repayment ability and choose the installment time according to their own income. This is more suitable for lenders with average economic strength in the early stage. After sharing, there is no need to invest too much money in the early stage.

2 Average capital

The average capital divides the total loan amount into equal parts during the repayment period, and repays the same amount of principal and interest generated by the remaining loan in the current month every month, so the amount that users need to repay every month is gradually reduced.

Due to the high repayment pressure of lenders at first, it is more suitable for lenders with strong repayment ability in the early stage, but as time goes by, the monthly repayment amount will be less and less, and the pressure will be less and less.

3 Interest first, then capital.

Interest before principal is also called monthly interest payment. When the principal is due, the interest is paid first, and then the principal is paid according to the repayment agreement. Although you only need to pay monthly interest in the early stage, the pressure is very small, but in the end, you have to pay off the loan principal and current month's interest in one lump sum, and the pressure in the final repayment period will be very great.

If there is a "renewal", there will be handling fees such as prepaid fees and notary fees, and the total cost will rise. In addition, whether the loan can be renewed smoothly depends on the loan policy at that time. Therefore, the comprehensive cost of interest before principal is high, and the renewal of loans is uncertain. Renewing loans requires a certain amount of energy and may not be suitable for everyone.

How to choose the repayment method depends on the borrower's cash flow. If the funds are sufficient and stable, and there is no investment channel higher than the loan interest, it is recommended to repay the principal more.